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If Reported Profits Are Reduced by $6,000 in Year One

Question 17

Multiple Choice

If reported profits are reduced by $6,000 in year one because of the operation of conservatism:


A) profits in later years will be unaffected.
B) profits in later years must be $5,000 lower.
C) profits in later years will be $6,000 higher.
D) none of the above.

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